FXStreet (Delhi) – Analysts at TDS, notes that the global forex markets are quiet today as investors are slowly finding their way back from their summer holidays but participation remains minimal ahead of the major event risks tomorrow (ECB) and Friday (US employment).
Key Quotes
“Equity markets took a breather overnight after Tuesday’s renewed volatility dealt a fresh blow to broader sentiment. The major indices in Europe have traded back into positive territory after early declines. This follows a more mixed session in Asia overnight, but the declines are mild by recent standards.”
“The USD is firming modestly against most G10 counterparts but a lack of major European data releases has kept things on a quiet footing. The CAD is the main underperformer today, down 0.8% against the USD, as oil prices continue to retrace their sharp gains from last week. After a near-8% drop yesterday, front-month WTI futures are another 2.5% lower today.”
“AUDUSD is also lower (-0.5%) after a weaker-than-expected Q2 GDP report has helped send spot briefly below the 0.70 mark for the first time since 2009. The NOK is defying commodity price weakness with a small 0.2% gain while the SEK (+0.3%) is also modestly higher ahead of the Riksbank rate decision tomorrow. There we and the consensus expect an unchanged result, but a sizable minority of members (25%) of the Bloomberg forecast panel are looking for further rate cuts tomorrow.”
“Looking ahead to today’s session, we think the general tone is likely to remain relatively muted on average. Markets remain largely flow-driven, which leads us to remain cautious and reluctant to chase price action.”
(Market News Provided by FXstreet)